In today’s shifting economy, employers are looking for ways to reduce their overall costs, including their benefit spend. In Care’s 2023 Future of Benefits Report an overwhelming 95% of business and HR leaders surveyed reported that they will be recalibrating their company’s benefit strategies this year.
Despite changing their benefits strategies, the business objectives that inform the benefits strategy remain the same. Increasing productivity (53%) is the primary goal of their benefits programs, followed by attracting and retaining top employees (49%).
Understanding the potential impact of benefit cuts
Employers are cutting back all types of benefits, but the impact of those cuts on employees and the company’s objectives can vary dramatically. While 47% of respondents say they plan to trim benefits, their focus is more on recalibration—and of selective trimming and fund reallocating–rather than on slashing and burning. And what benefits they cut back on matters.
Trimming employee perks and benefits such as wellness discounts, corporate retreats, and office celebrations—to name a few examples—may create some employee noise, but likely will have minimal impact, if any, on business objectives of productivity and retention. In contrast, cutting back on caregiving benefits, such as child care and senior care, can have profound effects for employees and employers alike.
The business case for care benefits
Finding care is hard enough for working families, especially amongst nationwide caregiver shortages. And finding affordable care is harder than ever in today’s economy. Without caregiving support from their employers, many employees have no choice but to reduce their hours or worse yet, quit altogether.
- 20% of working parents had to leave work or reduce their work hours due to a lack of child care in the past few years.
- Nearly one-third of senior caregivers have voluntarily left a job to meet their senior caregiving responsibilities. And that means costly productivity losses and high attrition rates for businesses.
Companies are prioritizing child care and senior care in 2023
HR leaders are recognizing the strategic benefits of supporting working parents and caregivers—and they are recalibrating their benefit strategies and spending accordingly. In fact, 46% of companies said they are prioritizing childcare in 2023 and 43% said they are prioritizing senior care benefits in 2023.
By helping employees find reliable affordable care so they can get to work, employers reap the benefits of a more productive, loyal workforce.
- 80% of employers surveyed reported that childcare benefits have a positive impact on productivity
- 78% say they boost recruitment and retention
If you are an HR leader who is considering recalibrating your benefits strategy due to economic shifts, be sure to carefully evaluate the impact of the benefits to your employees—and to your organization. And if retaining top talent and improving productivity are your primary goals, now is the time to take a closer look at the business impact of caregiving benefits. In today’s economy, you can’t afford not to.
